Question
Foster Inc. carries the following debt investments on its books at December 31, 2021, and December 31, 2022. All securities were purchased during 2021. Trading
Foster Inc. carries the following debt investments on its books at December 31, 2021, and December 31, 2022. All securities were purchased during 2021.
| Trading Securities: |
|
|
|
| Company | Cost | Value, Dec. 31, 2021 | Value, Dec. 31, 2022 |
| A Company | $25,000 | $13,000 | $20,000 |
| B Company | $13,000 | $20,000 | $20,000 |
| C Company | $35,000 | $30,000 | $25,000 |
|
|
|
|
|
| Available-for-Sale Securities: |
|
|
|
| Company | Cost | Value, Dec. 31, 2021 | Value, Dec. 31, 2022 |
| X Company | $210,000 | $130,000 | $50,000 |
| Y Company | $ 50,000 | $ 60,000 | $70,000 |
|
|
|
|
|
Required:
Prepare the necessary journal entries for Foster on December 31, 2021, and December 31, 2022.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started